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Networth guesstimate for 6 years US stay
Posted: Wed May 05, 2010 8:44 am
by prashant_ideas
Gurus,
I would like to seek your opinion for my question -
How much should be the net worth of an individual who has stayed in the USA for SIX years on H1B visa status? (US savings only)
here are some details(please ask if more input required to answer above quesion) -
1) Single income, live with wife and kid (now 6years). Kid was born in India. So i moved here to US from India with a new born basically.
2) Moderate lifestyle - not tooo frugal not too outgoing on expenses.
3) No financial dependencies back in India.
Thats all I can think as of now. Please ask for more info. Desi, RRK I have been reading your posts so if you could advice that will truly be appreciated and helpful for future planning purposes.
Thank you,
Prashant.
Networth guesstimate for 6 years US stay
Posted: Wed May 05, 2010 9:49 am
by sanjosedesi
prashant_ideas;285410How much should be the net worth of an individual who has stayed in the USA for SIX years on H1B visa status? (US savings only)
here are some details(please ask if more input required to answer above quesion) -
1) Single income, live with wife and kid (now 6years). Kid was born in India. So i moved here to US from India with a new born basically.
2) Moderate lifestyle - not tooo frugal not too outgoing on expenses.
3) No financial dependencies back in India.
Thats all I can think as of now. Please ask for more info. Desi, RRK I have been reading your posts so if you could advice that will truly be appreciated and helpful for future planning purposes.
I am not sure what your point is...
However, assuming the person saved 25K per year (conservative) and made some money in stocks - maybe 200K.
Could be as high as 500 K (unlikely), but I assume a person starting on H1 is usually early-mid 20s and unlikely to be earning that high (unless contracting).
Networth guesstimate for 6 years US stay
Posted: Wed May 05, 2010 9:50 am
by kkr
Hmmm ... how about sharing some basic info like .... your salary?! Your savings will be very different if you make $40K a year vs. $150K a year ...
Networth guesstimate for 6 years US stay
Posted: Wed May 05, 2010 7:52 pm
by prashant_ideas
kkr;285419Hmmm ... how about sharing some basic info like .... your salary?! Your savings will be very different if you make $40K a year vs. $150K a year ...
Ok missed this info - here it is -
1) Avg. Sal of 70K per year for the past 6 years.
2) Lived in apartment all 6 years.
3) ...
Networth guesstimate for 6 years US stay
Posted: Wed May 05, 2010 8:00 pm
by hope4best
You should feel happy if you saved 150k over the 6 years. It doesn't matter how frugal you are you'd have spent money for (most if not all) rent, utilities, car loan payments, gasoline, pre-school fee for child, food, travel expenses, shopping, eating out and other miscellaneous expenses.
Networth guesstimate for 6 years US stay
Posted: Wed May 05, 2010 8:03 pm
by mn_op
prashant_ideas;285517Ok missed this info - here it is -
1) Avg. Sal of 70K per year for the past 6 years.
2) Lived in apartment all 6 years.
3) ...
Very simple:
70K salary = $4500 take home
Average Monthly expenses - $2700 (rent, grocery, car, utilities, clothes, toys, medicines, vacations, hotels, eating out)
2 India vacations: 12000
In theory Savings = $1800 * 72 -12000 = 117,000
However, life extracts its toll and so you will end up spending $5000 per year for something.
In reality savings = 11700 - 25000 = 92000 (and of course you wouldn't have had any opportunity to invest so no interests/dividends).
Networth guesstimate for 6 years US stay
Posted: Wed May 05, 2010 8:05 pm
by prashant_ideas
sanjosedesi;285418I am not sure what your point is...
However, assuming the person saved 25K per year (conservative) and made some money in stocks - maybe 200K. [/quote]
===
The point is that Opinions/guesses will give me a guideline to see where I stand as compared to where I should have been, So that I can plan efficiently for the remaining tenure here in USA. Do let me know if you need more data, which was not provided.
Thanks, Prashant.
Networth guesstimate for 6 years US stay
Posted: Wed May 05, 2010 8:13 pm
by prashant_ideas
mn_op,
Thanks for your simplified math, i was working with all the .xls :(
- Prashant.
Networth guesstimate for 6 years US stay
Posted: Wed May 05, 2010 8:45 pm
by go2chennai
I read in a different forum most people (early in their careers) save between 15% (spendthrifts) and 25% (frugal) of their gross income. Going by your logic of you being somewhere in between, 20% of 70k*6 = $84000.
Networth guesstimate for 6 years US stay
Posted: Wed May 05, 2010 8:51 pm
by indigoyogi
prashant_ideas;285530mn_op,
Thanks for your simplified math, i was working with all the .xls :(
- Prashant.
Prashant,
If your question was to find out what is the potential savings that you could have made, that's a different question.
Otherwise, it's a simple budgeting thing like mn_op said.
A person earning (70K) ,assuming its a permanent job with an US/Indian company, will save just like mn_op said considering typical indian h1b life style. The more you earn over that money, will all be your savings after taxes. If you are planning to be here and are confident of contracting and your skills has good rate, that's the only way you can make more savings.. Other options are working for the top consulting firms as full time employee with better role. However, I must caution here, to be careful about choosing consulting companies to work hourly rate.. It's getting tougher due to enforcement and some of these companies not complying with H1b stipulations ..